High unemployment could lead to 'permanent damage' to UK
May 4 , 2012
Unemployment in the UK is expected to rise from its current 8.3 percent to 9 percent by the end of 2012 and could lead to “permanent damage to the UK’s productive capacity”, according to a leading think tank.
The National Institute of Economic and Social Research (NIESR) has also forecast growth in 2012 will be close to zero, increasing to 2 percent in 2013.
Official figures released by the Office for National Statistics last week indicated the economy shrank by 0.02 percent in the first quarter, resulting in the UK returning to recession.